Iraq has not requested IMF loan, Government Advisor Says

Baghdad -INA

The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed on Saturday that Iraq has not yet submitted a formal request to obtain a loan from the International Monetary Fund (IMF) noting that Iraq maintains continuous contact with the Fund, and a government team conducts annual meetings with its officials.

Iraq enjoys close relations with IMF, and has concluded more than five agreements since 2003, three of which are Stand-By arrangements, while the other agreements relate to emergency support,” Saleh told the Iraqi News Agency (INA).

"The Fund has played a major role in supporting the Iraqi economy over the past 23 years, especially since Iraq is now one of the biggest victims of the ongoing war in the region, taking into account that 85% of its oil exports pass through the Strait of Hormuz, and this has caused great damage and international concern, given that Iraq is an important and active member in the stability of the region and world markets,” He added .

"There is an Iraqi government team in contact with the IMF and meets with the Fund's mission to hold consultations with its officials twice during the year, in the spring and autumn, and there is concern on the part of the Fund about the situation in the Middle East, including the situation in Iraq,” He pointed out .

“Iraq signed an agreement with the IMF on July 7, 2016, for a credit standby arrangement through the provision of a large loan, which played a major role in supporting the general budget,” He explained “signing an agreement with the IMF is a matter decided by the Iraqi government, and this does not prevent consultations between the two parties, as Iraq is a member of this institution responsible for stability in the world.”

"Iraq will borrow from the IMF if the need arises, but there is no official request from the government yet,The current need is for the war in the region to stop and for its geopolitical effects on oil exports to cease,” He stated .

He added, "Technical assistance from the IMF is currently available, unlike the financing issue, which requires the Iraqi government to approve a program."

He explained that "the loan itself represents a reform program to support the budget or to achieve social goals, namely supporting the health and education sectors, because it is a human investment that must have conditions that define spending patterns and adherence to a reform program agreed upon between the Iraqi government and the IMF."